CX Enterprises has the following expected dividends: $1.03 in one year, $1.17 in two years, and $1.32 in three years. After that, its dividends are expected to grow at 4.2% per year forever (so that year 4's dividend will be 4.2% more than $1.32 and so on). If CX's equity cost of capital is 12%, what is the current price of its stock? The price of the stock will be $ (Round to the nearest cent.)
CX Enterprises has the following expected dividends: $1.03 in one year, $1.17 in two years, and $1.32 in three years. After that, its dividends are expected to grow at 4.2% per year forever (so that year 4's dividend will be 4.2% more than $1.32 and so on). If CX's equity cost of capital is 12%, what is the current price of its stock? The price of the stock will be $ (Round to the nearest cent.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![CX Enterprises has the following expected dividends: $1.03 in one year, $1.17 in two years, and $1.32 in three
years. After that, its dividends are expected to grow at 4.2% per year forever (so that year 4's dividend will be 4.2%
more than $1.32 and so on). If CX's equity cost of capital is 12%, what is the current price of its stock?
The price of the stock will be $
(Round to the nearest cent.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5941ce67-32ad-44c7-8162-63382753114d%2Fb9da26aa-2552-4642-8791-432269bc8f8d%2Fn9w57wf_processed.png&w=3840&q=75)
Transcribed Image Text:CX Enterprises has the following expected dividends: $1.03 in one year, $1.17 in two years, and $1.32 in three
years. After that, its dividends are expected to grow at 4.2% per year forever (so that year 4's dividend will be 4.2%
more than $1.32 and so on). If CX's equity cost of capital is 12%, what is the current price of its stock?
The price of the stock will be $
(Round to the nearest cent.)
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